When using Leases in FAM is there any other way to link an Asset to a Lease without having to do the whole Asset Proposal process? It's just so many steps!!

Nope.

no, and every step is important… to accounting.

Ok thanks @Karina and @sam1128 I try to run the Asset Proposal and everytime it doesn't make an asset proposal with my lease I can't figure out what step I missed

There could be many things. one to check is one GL account for each account type

ok thank you so much. @Karina if you don't mind i just have 2 more questions. 1. Will this Lease record eventually make an Invoice each month based on payments I setup on the Lease Amortization tab? 2. Could I use this Lease record for Rentals as well? Like if I Rent equipment to customers as well as Lease equipment to customers?

1. what invoices?

Maybe I'm thinking of this backwards but ACS has told us that we can use the FAM module to bill our customers for equipment we rent to them

I have a feeling you are renting equipment to your customers? this is not for that

yeah, they came up with this whole convoluted process to do rentals and leases for our customers

no, for that you have to use SO module; if you are renting your fixed assets (I assume you do) there is a completely different process, NOT the lease module of FAM

it's so annoying, but sounds like FAM is moreso for us to record equipment WE lease from a Vendor

it is not “annoying”, this is what this module is for, that’s the only purpose.

I meant it's annoying that ACS has pointed us down this path and its completely the wrong path

it would be easier to write a script for loan amortization using ChatGPT, mr @nsAI 🙂.

Thanks @Karina I will keep working through some other options for this.

a script would be your best option, honestly.

Yes if you need to create just invoice based on the payment , a script would be the best option

As I was thinking through doing something custom earlier, I was stumped on what to do with the COGS for an item. For example, we purchase receive an Item which has an Inv Value, then when the item ships it hits COGS...however, the revenue doesn't balance with the COGS Like if the item was $200, but we rent it for $20/month then our Gross Profit will be out of whack becasuse we have $200 in COGS vs. $20 in Revenue

true, but you recognize revenue differently/monthly, like a subscription, so there is something else at play

Would you suggest using Deferred COGS or something like that?

aaaah, of course, you came to ARM 🙂. does not everyone LOL

But the Item will have a COGS impact when it is picked and shipped

well, you can tie your SO with the asset tag

no

why is COGs a problem? are you saying you have to recognize the cost over time? why? because your contract is actually annual contract and you are invoicing monthly?

I guess the problem is "should we be recording COGS" when we ship the product since it's going to be coming back to us and we technically havent' sold it to the customer yet

you record your cost via depreciation, it is your equipment, you own it

So after thinking about this for awhile it sounds like my issue is that we purchase these items and put them into our inventory, but then when we rent them we should be taking them "out" of inventory and transferring them to be a Fixed Asset we own, this would eliminate the COGS problem i believe

i agree; you will have to think of the process of taking each leased inventory asset into FAM and “depreciating” them ratably over the term of your contract for example. Not knowing details your details this seems to be what you need on the expense side.